Aussie firm buys stake at Papua gold project

Australian-listed firm West Wits Mining Limited has signed the definitive sale agreement with Paniai Gold Limited for the acquisition of a 50% interest in the Derewo River Gold Project situated in Papua province.

Execution of the definitive agreement enables, the company to proceed through independent financial services BGF Equities with the placement to raise A$3 million authorised at the recent shareholder meeting and the shareholder purchase plan to raise $500,000, the company said.

Funds raised will be used to complete an extensive sampling program over the Derewo River Gold Project as well as bringing in equipment to establish a modern mining capacity (approx $2 million).

Funds will also be used to complete a drill program on the Monarch resource and existing ?gap? between the Monarch resource and the Emerald Gold Project (approx $1.2m) in South Africa with the balance available for working capital.

West Wits plans to complete capital raisings and settle the acquisition within the next two to three weeks. (romel)